Prospera and Sunshine Coast federal amalgamation; Fairstone move

Summary#

• The Canada Gazette published three short notices on May 17, 2025.
• Fairstone Bank of Canada gave the new address for its designated office for service of enforcement notices. Separately, Prospera Credit Union and Sunshine Coast Credit Union told their members about a possible move to become federal credit unions and then amalgamate with Coast Capital Savings, and explained how that would change deposit insurance from the Credit Union Deposit Insurance Corporation of British Columbia (CUDIC) to the Canada Deposit Insurance Corporation (CDIC).

What it does#

• Fairstone notice:
  • Says the designated office for service of enforcement notices has moved to 145 King Street West, Suite 2300, Toronto, Ontario M5H 1J8. This was filed under the Support Orders and Support Provisions (Banks and Authorized Foreign Banks) Regulations.
• Prospera and Sunshine Coast notices:
  • Describe a proposed “Federal Amalgamation Transaction” where each credit union would apply to continue as a federal credit union under the Bank Act and then immediately amalgamate with Coast Capital Savings.
  • Explain that if the transaction happens, CUDIC insurance on deposits at Prospera and Sunshine Coast would stop and CDIC insurance would start for the new Amalgamated Federal Credit Union.
  • Outline a transition rule: pre-existing deposits made before the continuation/amalgamation day would be covered by CDIC to the same extent as they were by CUDIC during a limited transition period.
  • Give key differences between CUDIC and CDIC coverage, including limits and items that CDIC does not insure.
  • Note that member votes and regulatory approvals are required, and that as of publication neither credit union had submitted the federal application or received ministerial approval. The notices were prepared under the Disclosure on Continuance Regulations (Federal Credit Unions).

Who's affected#

• Members and depositors of Prospera Credit Union and Sunshine Coast Credit Union — especially anyone with large balances, term deposits, registered plans (RRSP, TFSA, etc.), non-equity shares, or traveller’s cheques.
• Members and depositors of Coast Capital Savings, because the three institutions would form a single federal credit union if the plan goes ahead.
• People or businesses with deposits payable outside Canada, or deposits where the Government of Canada is a preferred claimant (these can be treated differently under CDIC).
• Legal or enforcement contacts who need the updated service address for Fairstone Bank of Canada.
• If it is unclear who is affected by a particular instrument (for example, some non-equity share rules), the notices say members should check the member materials or contact the credit union.

Why it matters#

• CUDIC currently insures the full amount of eligible deposits at B.C. credit unions. CDIC’s standard limit is $100,000 (principal and interest) per eligible category at each member institution. That could reduce protection for people with more than $100,000 in the same CDIC insurance category at the combined federal credit union.
• There is temporary protection: eligible deposits that existed before the consolidation would receive transitional CDIC treatment — demand deposits for up to 180 days, and term deposits until maturity — but the transition does not cover everything (for example, some non-equity shares and traveller’s cheques are excluded).
• Members who plan to vote on the special resolutions should review these insurance differences before deciding. If you have large balances, non-standard instruments, or deposits payable outside Canada, you may need to consider moving funds or asking the credit union for details about how your specific accounts will be treated.
• The Fairstone address change is an administrative update; it matters mainly to parties who serve legal or enforcement documents on the bank.